MS4105 | Market Approach of Arnott Company

Arnott's Biscuits Limited is Australia's largest producer of biscuits and the second-largest supplier of snack food.

It is a subsidiary of the Campbell Soup Company of the United States.

Arnott's, in common with the majority of Australian biscuit manufacturers, operated primarily in its home state, New South Wales, but has manufacturing plants in Virginia, Queensland (manufactures only plain, cream and savory biscuits) and Shepparton, Victoria. In the 1960s, a series of amalgamations and acquisitions in the Australian market resulted in the creation of the Australian Biscuit Company Pty Ltd. Arnott's are well known in Australia and internationally for producing several quintessentially Australian biscuits. Some of their major products include

• Arno Shortbread
• Bush Biscuits: similar to an Arrowroot but larger and harder, made for camping.
• Caramel Crowns: a plain biscuit, topped with caramel, and covered in chocolate.
• Cheds: a savoury cracker that is perforated and sprinkled with cheddar cheese and salt.
• Chocolate Butternut Snap: a crunchy oatmeal and coconut biscuit covered in chocolate.
• Chocolate Dessert

Therefore, you are being called in as a consultant to develop new marketing opportunities to expand the brand.

You are now employed. marketing consultants to help design a Marketing Plan for them. However you will need to firstly understand the brand by performing

a SWOT analysis and then designing the Marketing Mix (4P’s). Lastly, it is very important that you are able to foresee or predict potential problems you might have with making or launching the product. Are required to pitch your marketing plan to your class. Arnott’s Biscuits is looking for a creative, practical and fun marketing strategy! Objectives of the Marketing Plan:

1) To build awareness for Arnott’s Biscuits Limited
2) To increase brand recognition for Arnott’s Biscuits Limited

Answer:

Introduction

Marketing is the basic process of maintaining the business and the execution form the company is innovative in most of the cases. In the case of marketing, product level, promotion, pricing strategy and distribution of the products are the most important things to cater. Marketing is the process of maintaining relationship between customers and company. The relationship signifies improve products culture and need of the product for the customers. The need of the product and it's important in that particular market is the key business approach that sharpens the objectivity of the business. The promotional approach, timing of business, with legitimate planning and appropriate budget allocation is important in case of proper direction of business (Kizil et al. 2013). The aim and objectives need to be set at the initial time when the business needs to open. The commitment for business and make some innovation in marketing approaches are accepted by the people and they also get habituated by the process. The differentiation in product is important else the people will not interested to buy such things and that is the reason most of the companies enter the business market with some innovative products.

Company overview and marketing principles

In the case of Arnott's Biscuit Limited, marketing commitment is quite innovative as they promote some effective facts regarding children. Arnott's Biscuit Limited is the second-largest brand in Australia and the value market share is 60%. The household penetration of the company is 95% and it is the subsidiary of the Campbell Soup Company (Arnotts.com.au 2018). The company was started in the Australian market in 1865 with a very small bakery in Hunter Street. The unique selling proposition of the company is the good health and wellbeing of consumers. As per the consistency and improvement, the organic net selling rate and market share of the company are always up in nature (Arnotts.com.au 2018). Divested snack foods are the first process that creates as the driving role aspect. After that, an unprofitable private label is another option that provides the growth opportunity as well. The peripheral operation in the business market and consolidated manufacturing process is the key approach that business level will grow up and make their position in the global market.

The principle of "Children's Marketing Initiative" one of such moves that promoting their brand at the highest level (Arnotts.com.au 2018). The promotion of a balanced diet and healthy dietary choices are handled by the children aged under 12 years. The goal of the healthy lifestyle is the key matter and that is the reason promotional activities are done through the children. The products are healthy and marked safe by the Australian food government authority. Good dietary habits, physical activity and government criteria have been maintained through the process (Arnotts.com.au 2018). The use of product placement and advertisement is the key role in that case and change in lifestyle will highlight the issue of marketing acceleration. The communication strategic plan is another aspect of business and through the communication, better marketing penetration can happen.

SWOT analysis 

Strengths

Arnott’s Biscuit Limited is one of the experienced companies in Australia and they have spent over a decade. The experience of the company in the business field is the crucial aspect of business (com.au 2018). The high concentrated retail trade and restructure of the biscuit industry portfolio has been changed by the company. The restructure of ‘Route-to-Market' warehouse system is the key matter in that case and logistics management become good through the process. The effective system of warehouse management is efficient for Arnott's Biscuit Limited.
The company has made some of the core brands for their future development. Effective marketing is one of the core processes that maintained by the company (Gray 2012). Trade promotion is the process of retail execution between two partners. The marketing technique, special pricing, display fixtures, value-added bonuses all these are included in the case of trade promotion (Reeve 2015). The process of exceptional merchandising is another development aspect of that initiated in case of strength.
The company has variety of biscuits. They have Savory Crackers like Shapes, JATZ, or in case of sweet biscuits Tiny Teddy, Creams and in chocolate biscuits, they have Tim Tam, Mint Slice (com.au 2018). These much varieties in cracker for all the taste is important and that is the reason they are considered as the top band of Australia. The net sale of cookies and cracker segment 40% of the net sales rate had acclaimed (Arnotts.com.au 2018). The company has invested in a Pilot Plant and Innovation centre for the development of business and to produce more innovative biscuits that open up more opportunities for the company.
State-of-the-art manufacturing is the unique process of operation and that makes some innovative steps in marketing. The process of manufacturing is important in this situation and the company has that opportunity to endorse their business at the new dimension (Hobill and Sanderson 2017).
The boost from the parent company is important in that case and Campbell's is one of the most recognising companies in Australia. The support has been provided since the twentieth century and this is the main strength of Arnott’s Biscuit Limited.
The company has shipped more than 40 countries and they have already earned a good amount of market share. Not only in Australia but also in the international arena they have a good business culture. As per the financial year 2015, the accumulated revenue was AU$1.10 billion and over 4,000 employees are associated with the company (com.au 2018). Thus, the marketing of the company is good and effective enough to promote an international level.

Weaknesses

• The company uses some locally purchased Australian ingredients. The taste or quality of the product will improve if those products are collected from the best resources. The local market ingredients are not so effective and that will impact on the ultimate product. The quality of ingredients matter, so the logistic department and evaluation of good taste from anywhere in the world are needed for the development of the products.
• The company has shipped in more than 40 countries but the amount of market share is also important. The market share in each country is less than 20% and that is a big concern for the company as well (com.au 2018). In the case of market development, generated revenue and market share are important and Arnott's Biscuit Limited has to take care of that.
• There are some products which can be afforded by a rare section of people. The reason behind the rare section is their taste of food and their habit of having the food. Unless the amount of money invested on that product is equivalent to three or four same kinds of products from the different brand (Bunyan 2015). This brand name is a reason for having and the taste of people is another factor.
• Legitimate feedback is not taken from the management. The world is connected with social media network so the company must open a site where people will come and share their view regarding the new products (Hair Jr et al. 2015). This is an opportunity to develop the product quality and taste. The feedback process is not authentic and management has no time to evaluate that, which is considered as the drawback of the company.

Opportunities

• The main business opportunity for Arnott's Biscuit Limited is the expansion of business by using their objectives and productivity. The core principles of the company are to outline a better policy for children. The process of good food habit needs to introduce in all over the world then only people love to have the brand.
• The increase of fortified products is another opportunity that Arnott’s Biscuit Limited can introduce for the development of business (Abratt and Kleyn 2012). In the case of market penetration, the range of diverse products are important and that encourage the chances of better revenue generation.
• The company can easily extend their product territory in cereals and breakfast segment. The planning needs to introduce as this is one of the easiest things that can easily be derived from their existing process (Abratt and Kleyn 2012). The segment is quite interesting for as they have the options to avail a good food in that case.
• Marketing in social media is another opportunity that business should include in their marketing process so that people associated with the media marketing or the people engaged most of the times at the social network systems will know about the product. The competitive advantage is the main aspect in that case and quality product marketing is good for the people's perspective.

Threats

• There are some similar companies working hard to manage their business. The objectives of the business are to provide the best quality biscuit in Australia and all over the world. But the process is not that easy, as there are companies like ‘Kraft Food ltd', ‘Goodman Fielder ltd' or ‘Griffins Food Ltd' are persisted (Manning 2013). These companies also have the potential to become the best company in Australia so the market threat is there.
• There are some the international companies exist in foreign market that curtails the market penetration of Arnott’s Biscuit Limited (com.au 2018). The companies have some specification in those native market and Arnott’s Biscuit Limited has to analyse the market to set their target customers and then showcase their business. It takes time more than the existing ones, so the market penetration is less in international market and Arnott’s Biscuit Limited has to look after the matter.
• There are so many expensive products available for Arnott’s Biscuit Limited and these products cater to a section of people. Those need to be replaced by the less expensive products. Products price is one of the important factors for customers and they try to find the same products at low range and hamper the business (Vlachos 2012). So low range products are also considered as a threat.  

Marketing Mix

The business market analysis primarily depends on the 4P process of marketing mix. The culture of the product may change its choice and dimension according to the demographic, psychographic and behavioural positioning of the customers. The standardization adaptation of good taste in business and people desire to have such things is the key concern for this process. Product, Price, Place and Promotion are the main aspects in that case and the variety of products that Arnott’s Biscuit Limited have is adding an unconventional market range for the company.

Product

In the case of product, the large number of the product range is available. Tim Tam, Shapes, Sweet Biscuits, Crackers, Crispbread, Chocolate Biscuits, Savoury Biscuit all there are unique and significant products for the company (Granot, Brashear and Cesar Motta 2012). They have the range of creams and fruit flavours as well, that rarely found in Australia. Product quality in each of the products are crucial and they have the potential to be the best in Australia.

Place

Arnott’s Biscuit Limited serves all over Australia and the store is available in most of the places. The effective way of business and extended when the products are available in the supermarkets. People find their favourite biscuits from supermarkets as well. The biscuits manufactured in New South Wales, Queensland and Shepparton but they have the business all over the world (Arnotts.com.au 2018).

Price 

Some of the product prices are high in natural and Arnott's Biscuit caters to the section of people for that particular price range. However, the chances of business acceleration in such a situation are restricted. The ranges start from AUD 3.50 and then lots of verities are available (Arnotts.com.au 2018). The company needs to extend their price range in a diverse manner and also analyse the market in the proper way to understand the variety of biscuits available in the market at low range. So the production cost needs to curtail in a proportionate manner that product selling price will be less.  

Promotion

This is the most important part of the business marketing as the promotional aspect is the only way to develop the business understanding and popular the product in front of the whole world. Advertising in flex, banner or any newspaper instigate the business and provide a scope for the business as well. The advertisement of the food showcases the quality for children. The food is maintained with hygiene and the products are good for children aged between infant to 12 years (Arnotts.com.au 2018). This is the unique selling proposition for the company. The social media advertising is also important in that case and communication activities in verbal or digital medium are the key process that maintained the promotional ratio (Roser, DeFillippi and Samson 2013). There are some government criteria that have been followed by the company in case of promotional activities. The food and beverage department has a licensing issue in promotion as well. The promotional aspect of involving children is the best strategy for the company. In case of penetrating in a different county, the process helps the matter and initiate best chances of business.

Marketing challenges faced by the company

There are some basic marketing challenges that every company has faced in recent times. 64% of companies are lacking in traffic and lead issues. The websites are not built in the proper way and that restricted the company from the global people. The return of investment problems in marketing activities is another problem faced by the Arnott’s Biscuit Limited. Companies need to secure their budget at the initial time. The budget allocation is not done at the initial time, which is a challenge for the company (Goworek et al. 2012). Managing websites and control it in a proper manner is the issue that secures the process for the company. Arnott’s Biscuit Limited has a complete website but the processing and maintaining need up to the mark. In the case of marketing, trained employees are important and training need to be done in a proper way. So the company needs to take some training classes in such a situation to make the employees effective. Subsidiary process is not the way of business at its own, thus finding an executive sponsor for the individual process, is important and this is one of the challenges that 10% of the companies are faced in recent times (Goworek et al. 2012). These challenges can be mitigated by the effective business decorum and innovative marketing process implementation.  

Conclusion

Therefore it can be concluded that Arnott’s Biscuit Limited continues their growth in global business by introducing the new form in the biscuit. The larger categories, textures, flavours, packaging all these are important for the diversification of the company. The market penetration is immense in such a situation along with the focus health and wellness is important. Children aged 12 years and under are the main promotional asset for the company as they are used in case of advertisement and quality and pureness of the products are highlighted in that case. The internal analysis of the company signifies the positive and negative aspects and evaluate the marketing position of the company. On the other hand, the marketing strategy evaluates the current strategy and effectiveness that come with their price, place, product and promotional aspect. The marketing challenges are important for the company as well as the targeting, market position and evaluation of the promotional chances are there. Arnott’s Biscuit Limited makes its mark in all over the Australia and world by the effective changes and evaluation of their strategy and that need to be furnished in every aspect time after time.   

References

Abratt, R. and Kleyn, N., 2012. Corporate identity, corporate branding and corporate reputations: Reconciliation and integration. European Journal of Marketing, 46(7/8), pp.1048-1063.

Arnotts.com.au 2018 Open Something Real retrieved from: https://www.arnotts.com.au/ [Accessed on 3^rd September 2018]

Bunyan, M., 2015. A Plan for the Future of Australian Manufacturers: Developing Management, Leadership and Innovation.

Goworek, H., Fisher, T., Cooper, T., Woodward, S. and Hiller, A., 2012. The sustainable clothing market: an evaluation of potential strategies for UK retailers. International Journal of Retail & Distribution Management, 40(12), pp.935-955.

Granot, E., Brashear, T.G. and Cesar Motta, P., 2012. A structural guide to in-depth interviewing in business and industrial marketing research. Journal of Business & Industrial Marketing, 27(7), pp.547-553.

Gray, J., 2012. Misadventures of an irresponsible investor.

Hair Jr, J.F., Wolfinbarger, M., Money, A.H., Samouel, P. and Page, M.J., 2015. Essentials of business research methods. Routledge.

Hobill, S. and Sanderson, J., 2017. Not free to roam: Misleading food credence claims, the ACCC and the need for corporate social responsibility. Monash UL Rev., 43, p.113.

Kizil, C., Eddy, V., Clary, L. and Crowell, K., 2013. Hershey's Entry to the Australian Market with a New Brand: An Accounting and Marketing Perspective.

Manning, L., 2013. Corporate and consumer social responsibility in the food supply chain. British Food Journal, 115(1), pp.9-29.

Reeve, B., 2015. Corporate Practices and the Implementation of Self-Regulation-The Food Pyramid Meets the Regulatory Pyramid: Responsive Regulation of Food Advertising to Children.

Roser, T., DeFillippi, R. and Samson, A., 2013. Managing your co-creation mix: co-creation ventures in distinctive contexts. European business review, 25(1), pp.20-41.

Vlachos, P.A., 2012. Corporate social performance and consumer-retailer emotional attachment: The moderating role of individual traits. European Journal of Marketing, 46(11/12), pp.1559-1580.